nep-tre 2015-07-04 papers

on Transport Economics

Issue of 2015‒07‒04
two papers chosen by
Erik Teodoor Verhoef
Vrije Universiteit Amsterdam

Hukou and highways : the impact of China?s spatial development policies on urbanization and regional inequality By Bosker,Maarten; Deichmann,Uwe; Roberts,Mark
The Life Saving Effects of Hospital Proximity By Paola Bertoli; Veronica Grembi

Hukou and highways : the impact of China?s spatial development policies on urbanization and regional inequality

By:	Bosker,Maarten; Deichmann,Uwe; Roberts,Mark
Abstract:	China has used two main spatial policies to shape its geographic patterns of development: restricted labor mobility through the Hukou residential registration system and massive infrastructure investment, notably a 96,000 kilometer national expressway network. This paper develops a structural new economic geography model to examine the impacts of these policies. Fitting the model to available data allows simulating counterfactual scenarios comparing each policy?s respective impact on regional economic development and urbanization patterns across China. The results suggest large overall economic benefits from constructing the national expressway network and abolishing the Hukou system. Yet, the spatial impacts of the two policies are very different. The construction of the national expressway network reinforced existing urbanization patterns. The initially lagging regions not connected to the network have not benefitted much from its construction. By contrast, removal of the Hukou restrictions, which Chinese policy makers are considering, would result in much more widespread welfare gains, allowing everyone to gain by moving to where he or sheis most productive. Removal of the Hukou restrictions would also promote urbanization in currently lagging (inland) regions, mostly by stimulating rural to urban migration.
Keywords:	Transport Economics Policy&Planning,National Urban Development Policies&Strategies,Economic Theory&Research,Population Policies,Labor Policies
Date:	2015–06–30
URL:	http://d.repec.org/n?u=RePEc:wbk:wbrwps:7350&r=tre

The Life Saving Effects of Hospital Proximity

By:	Paola Bertoli (University of Economics, Prague); Veronica Grembi (Copenhagen Business School & CEIS, University of Rome "Tor Vergata")
Abstract:	We assess the lifesaving effect of hospital proximity using data on fatality rates of road-traffic accidents. While most of the literature on this topic is based on changes in distance to the nearest hospital triggered by hospital closures and use OLS estimates, our identification comes from the exogenous variation in the proximity to cities that are allowed by law to have a hospital based on their population size. Our instrumental variable results, based on Italian municipalities data from 2000 to 2012, show that an increase by a standard deviation of distance to the nearest hospital (5 km) increases the fatality rate by 13.84% on the sample average. This is equal to a 0.92 additional death per every 100 accidents. We show that OLS estimates provide a downward biased measure of the real effect of hospital proximity because they do not fully solve spatial sorting problems. Proximity matters more when the road safety is low; the emergency service is not properly organized, and the nearest hospital has lower quality standards.
Keywords:	Access to care, Hospital Proximity, Road-Traffic Accidents, Instrumental Variables, Difference in Differences
JEL:	C26 I10 R41
Date:	2015–07–01
URL:	http://d.repec.org/n?u=RePEc:rtv:ceisrp:349&r=tre

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